$SMC 2018 Bond Offer for 6.4% p.a.

San Miguel Corp (PSE: SMC) is offering bonds worth PHP30B to refinance its debt, trim US dollar obligations and for its capital investments.

The offer comes in 3 tenors: 5-year, 7-year and 10-year.

The indicative rates are 5.6% (5yrs), 6% (7yrs) and 6.4% (10yrs) but these rates are still to be finalized by March 1.

Offering period to retail investors will be on March 2 to 8. Listing date of the bonds is by March 15. The minimum investment amount is PHP50K and in multiples of PHP10K thereafter, but then again this depends on where you will avail the bond.

Interested? This is much better than time deposits, especially for money that you can park for the next 5 to 10 years. The risk though is in case SMC goes bankrupt or if there are delays in interest payments and redemption. What are the chances for SMC to close shop, right?

Or if you need to pull-out your funds before maturity, you will have to sell it in the secondary market, and prices there are market-driven, which means there is a chance that you sell it at lower value (depending on prevailing interest rates and opportunity costs of prospective buyers). But if you can wait until maturity, then there should be no issues for you.

Get in touch with any of the following financial institutions before the end of offer date:

BDO

BPI

Chinabank

First Metro Investments Corp (Metrobank)

ING

SB Capital (Security Bank)

Standard Chartered

To know more about bonds and how it can be a better alternative than time deposits, click here.

To learn more diverse investment options, check out my ebook #10Steps to a Richer Life. Find out what the 10 steps to a richer life are, neatly summarized into WISER PINOY. Likewise, learn about many other investment options which will make your money work harder for you.

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